2900:35:04eBookPorter Company is analyzing two potential investments.Initial investmentNet cash flow:Multiple ChoiceOYear 1Year 2Year 3Year 4оOThe payback period in years (rounded to 2 decimal places) for Project X is:3.38.2.98.3.71.2.00.Project X$ 95,4003.98.32,00032,00032,0000Project Y$ 76,0005,60034,00034,00028,000

Cumulative cash flow Year Annual Cash flow Cumulative Cash flow 1 $32,000 $32,000 2…

29 00:35:04 J eBook Porter Company is analyzing two potential investments. Project X $ 95,400 Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4. Multiple Choice. O The payback period in years (rounded to 2 decimal places) for Project X is: O O O 3.38. 2.98. 3.71 2.00. 32,000 32,000 32,000 0 3.98. Project Y $ 76,000 5,600 34,000 34,000 28,000

29 00:35:04 J eBook Porter Company is analyzing two potential investments. Project X $ 95,400 Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4. Multiple Choice. O The payback period in years (rounded to 2 decimal places) for Project X is: O O O 3.38. 2.98. 3.71 2.00. 32,000 32,000 32,000 0 3.98. Project Y $ 76,000 5,600 34,000 34,000 28,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 19 Simkins Renovations Inc. is considering a project that has the following cash flow data. What is the project's IRR? Year Cash flows A. 28.55% O B. 24.50% ○ C. 20.88% O D. 17.63% ○ E. 14.67% ○ F. 11.98% G. 9.51% OH. 7.24% 0 -$850 1 2 3 4 $300 $390 $280 $270
the enu Question Five a) An investor is interested in a certaim project with an initial outlay of $10, 000 and produces the following cash flows at the end of each year. Year 1 3 4 Cash flow $5,000 $3,000 $3,000 $5,000 $1,000 Calculate: The internal rate of return for the project. The net present value for the project at j, = 15%. b) A $5000 callable bond pays interest at j2 = 9.5% and matures at i. ii. par in 20 years. It may be called at the end of 10 to 15 years (all inclusive) for $5200. Find the price to yield at least j2 = 8.5% until the redemption. n- mxt (1+i)" 16,000 n= Mxt
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: Exercise 24-22A (Algo) Using Excel to compute IRR LO P4 Following is information on two alternative investments. Beachside Resort is considering building a new pool or spa. The company requires a 10% return from its investments. Pool Spa Initial investment $ (173,000) $ (118,000) Net cash flows in Year 1 41,300 33,300 Ces Year 2 57,300 51,300 Year 3 81,595 67,300 Year 4 91,700 73,300 Year 5 66,300 25,300 Compute the internal rate of return for each of the projects using excel functions. (Round your answers to 2 decimal places.) IRR Pool Spa %
question 11 What is the present value of investment A, B, and C at an annual discount rate of 24 percent?
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